Mortgage Rates Drop Lower in Early 2019

The new year started with lower mortgage rates across the board in the U.S. The 30-year fixed mortgage rate recently dipped to 4.51%. The low mortgage rate combined with decreasing home price growth should get prospective homebuyers excited to buy. However, the recent turmoil of the stock market may affect home buying activity in the next few months. The 30 year mortgage fixed-rate averaged 4.51% for the week ending January 3, 2019, down from last week when it averaged 4.55%. A year ago at this time, the 30 year fixed-rate mortgage averaged 3.95%. The 15 year fixed mortgage rate average 3.99% this week, down from last week when it averaged 4.01%.

This mortgage-rate drop offers a potential boost to the housing market. The decline on mortgage rates gives consumers an opportunity to obtain low rates on loans to purchase or refinance their homes, if they can look past volatile financial markets and still high home values. High home prices, stock market swings, and a traditionally slow time of year for home buying have largely lowered housing-market activity in recent months.

Short-Term Rentals Will Get Hotel Tax Treatment Under Newly Enacted Massachusetts Law

Under a newly enacted Massachusetts law, short-term rentals in Massachusetts will soon be taxed at the same rate as hotels. Massachusetts governor Charlie Baker signed a bill into law in late December aimed at regulating short-term rentals. This new measure goes into effect July 1st, and requires all hosts to register with the state, carry insurance, and taxes them at the same 5.7% short-term rental tax that hotels currently pay. The new law is expected to bring in at least $25M annually for the state. However, hosts who rent their home fewer than 14 times annually are exempt from the tax. 

The most popular short-term rental website, Airbnb, is very unhappy with the decision and is already preparing to fight back. Airbnb Northeast Press Secretary Liz Debold recently released a statement expressing their disappointment in the "flawed bill" and stated that Airbnb will continue to fight for "hosts, guests, and local small businesses". Airbnb most recently filed a lawsuit in federal court in November to overturn another Boston short-term rental law passed last summer which would have required hosts to register and a pay a $200 annual fee.

This new law will bring several large changes to Massachusetts, which encompasses several regions especially popular for short-term rentals. Cape Cod, the Berkshires, and Boston are specifically very profitable regions for Airbnb hosts. Under the new law, Boston is permitted to add on an additional 6.5% tax on short-term rentals. Massachusetts will be the first state requiring short-term rental hosts to register with the state. This law has serious benefits for the safety and security of consumers who stay in Airbnbs. Hotel industry groups were especially pushing for the required state registry and were happy with the new law. Lawmakers believe this law will create a more balanced playing field between short-term rentals and traditional hotels, leading towards a more fair and practical system.

5 Winter Maintenance Tips for Property Owners and Property Managers

As the cold winter approaches, property owners and property managers should start preparing for the detrimental impact winter may have on their properties. Luckily, by proactively protecting your properties and being fully prepared for winter storms, you can easily avoid any negative damages from harsh winter storms. Here are 5 simple steps for protecting your homes from the damaging winter weather this upcoming season:

1. Inspect the Exterior of Your Properties

Before the harsh snow storms appear, ensure that your properties are in excellent condition and are capable of withstanding winter weather. First, inspect your property for dying trees and broken branches which could potentially damage your property when high winds and aggressive storms arise. Also, inspect your property for seemingly harmless defects, such as small cracks in siding and windows. Freezing winter conditions can quickly intensify these problems, causing larger and more expensive repairs in the near future.

2. Reserve your Snow-Clearing Contractors in Advance

When the first cold winter storm hits, you want your properties to be cleared out first. Make the time to set up contracts with snow-removal companies, to avoid long wait times and aggravated tenants. Monitor the storm forecasts and weather reports and call in advance to secure their services.

3. Check for Build-Up and Snow-Pooling on Roofs

Perhaps one of the most overlooked ways to prepare your properties for winter is to ensure your properties have robust roofs that are able to withstand the heavy snow and ice. Begin by thoroughly checking rooftop AC units and vents for any leaves or debris that would prevent snow from properly melting and draining throughout the winter season. Also, inspect your gutters and clean out any lingering debris. During snow storms, monitoring snow build-up on your roof is just as important as well. Check the distribution of snow build-up to make sure the property isn't overloaded. Low-sloop roofs especially are at a greater risk for pooling, which can result in leaks and heavy property damage.

4. Stock up on Anti-Icing and De-Icing Products

During winter, always keep your properties and buildings safe and risk-free. Preventing icy sidewalks and maximizing safety is extremely important. Simply sprinkling rock salt outside of the building and nearby sidewalks will not fix the problem. As a responsible property manager, it is absolutely essential to invest in anti-icing and de-icing products. De-icing products will melt snow and ice after they fall, while anti-icing products will prevent the snow from sticking to begin with. Anti-icing products are an amazing way to minimize winter snow build-up, while also making snow and ice much easier to remove. Most likely, you will need a strong combination of both anti-icing and de-icing products to face the winter strongly and vigorously.

5. Leave the Heat on

Always remember to remind tenants to maintain a minimum temperature of 55 degree Fahrenheit when they go away on vacation. This will prevent pipes from freezing and bursting from cold winter temperatures.

Zillow is Expanding to Buying and Selling Homes

Zillow is expanding, and shaking up the real estate industry in the process. The online real estate company recently expanded into the mortgage business with their acquisition of of Mortgage Lenders of America. Now, Zillow is ready to start buying homes directly from sellers for cash, making whatever improvements are necessary, and listing them for sale.

Zillow's new direct buyer business is called Zillow Offers. Zillow quietly launched their direct buying business in Phoenix in April; now their services are available in Las Vegas, Atlanta, and Denver. The company will be soon expanding to California and North Carolina as well. As of this week, potential home sellers in the Charlotte, North Carolina area will be able to request a free, no-obligation cash offer for their home from Zillow. If the seller agrees to accept the offer, they then pick a closing date which works best for them. Zillow then takes possession of the home, does any necessary home improvements or cleaning, and sells the home for profit.

What makes Zillow's direct buying program different from others, is that Zillow is not cutting real estate agents out of the process. Zillow will be assigning a local real estate agent in the purchase and sale of each home, which will allow the real estate agents to earn commission. Zillow will be represented by the Redbud Group at Keller Williams South Park in Charlotte, North Carolina.

Zillow will be partnering with multiple brokerages across the United States, even giving them leads from motivated sellers, who decide not to accept Zillow's cash offer. Zillow has become part of the growing trend of real-estate companies buying homes directly from owners. Zillow's new service will be available in eight U.S countries by the end of 2019, interested homeowners will receive a preliminary offer within 2 days and close the sale in as little as 7 days from signing.

4 Low-Cost Ways to Increase the Value of Your Rental Property

1. Give your property curb appeal.

Prospective tenants will always view the outside of your property first, and first impressions are extremely important. An appealing and clean front lawn will help create an initial positive impression and set the mood for the remainder of the property tour. If you are not working with an extensive budget, upgrade whatever you can to make your property look clean and presentable. Remove fallen branches, leaves, and any debris which makes your property look worn and cluttered. Trim overgrown bushes and shrubs. Consider placing down fresh mulch, and adding bushes and flowers. Simply adding a new mailbox or a freshly painted one will make the property look fresh and new. Having outdoor lights and shutters can quickly and inexpensively make the exterior of your property pop. Furthermore, if there is a fence around your property, make sure it looks appealing. A broken fence or missing pickets is extremely unsightly, and not what any tenant wants to see. Ensure your fence is uniform and clean throughout the yard.

2. Extensively clean your entire property. 

Re-painting the entire exterior and interior of your property will add up extremely quickly, however cleaning the entire property is a more inexpensive way to increase property value. While scrubbing the exterior and interior of your property, consider painting any noticeable areas which need touch-ups. Overall, make sure the exterior of your property looks welcoming and bright. A freshly painted door gives the impression that you've actually renovated the house for the next tenant.

3. Upgrade your kitchen appliances.

Thoroughly inspect your kitchen appliances to decide if your property could use an upgrade. Brand new, shiny, and modern kitchen appliances will help raise the perceived value of your property and be extremely appealing to new tenants. Give potential tenants the functionality, quality, and aesthetic that they desire without breaking the bank. Stainless steel is the standard for modern kitchen appliances. Furthermore, the industry is moving towards appliances that are integrated within cabinetry. 

4. Create a higher demand.

A law of economics states that a commodity demands higher value when its demand goes up. If you successfully apply this rule when you're showing your property to respective tenants, you may be able to demand higher rent. If possible, invite all your prospects to inspect the house at nearly the same time. When the prospects see a large demand for your property, they will feel more inclined to pay a premium. They will also feel as if they want it more than they would otherwise. It's simply human nature.

Why Boston Remains one of the Most Expensive Places to Rent a One-Bedroom

New reports show that Boston's median rent for a one-bedroom apartment is $2,340 per month, making it one of the most expensive places in the United States to rent a one-bedroom. Boston ranks as the fourth most expensive city to rent a one-bedroom apartment, trailing just behind San Francisco ($3,500 per month), New York ($2,900 per month), and San Jose ($2,550 per month). Nationally, the median price for a one-bedroom is just $1,208 per month.

Boston's sales market also remains one of the most expensive in the nation. The median asking price for condos in the city both run well over $500,000. In several neighborhoods, it's not unusual to see asking prices averaging for more than $1,000 per square foot. 

There are multiple reasons for Boston's extraordinarily high price points, starting with high barriers to entry in the sales markets surrounding Boston. Neighboring cities including Cambridge, Brookline, and Somerville also command consistently high prices. Furthermore, Boston is full of wealthy tenants with money to spend. Although the city boasts a large share of rent-burdened households (where tenants pay at least 30 percent of their income in rent), Boston also has a sizable proportion of residents who find $2,500 a month for a one-bedroom not a big deal.

Another reason for Boston's high rents, are the tight inventory of apartments. Boston is home to more than 30 universities, colleges, and community colleges. Despite apartment construction booming in recent years, it's still not enough to satisfy the demand. Furthermore, the horrible commutes in and out of Boston have worsened over the year, raising the demand to live directly in the city. The proportion of Boston-area commuters who travel more than 90 minutes to and from work has increased a whopping 50.1% from 2005 to 2016.

How to Prepare a Dream Vacation Rental

If you are considering listing your home as a vacation rental, you should understand what qualities and features travelers find welcoming, and what features turn them off. Firstly, offering high-quality amenities and toiletries is key. This small detail goes a long way, and truly affects the overall ambiance and atmosphere of your vacation rental. Many travelers desire high-quality sheets and towels, as well as a satisfying selection of soap and toiletries. This makes your rental warm and inviting, while showing your guests both thoughtfulness and care. In a study conducted by Airbnb this summer, travelers rating their vacation cared most about the quality of their accommodations, followed by amenities that are both thoughtful and functional.

Make your vacation rental stand out by providing guests with comfortable amenities and accommodations. In addition to the basic shampoo, body wash, and conditioner, consider a bottle of wine, snacks, or a fully loaded beach bag. Offering guests a fully loaded snack bar and chilled beverages, are very small details which will make even the most modest space feel welcoming and inviting. Small details truly go a long way. Even adding incense, aromatherapy, or fresh flowers to your apartment rental can improve the ambiance and make guests feel at home right away.

Another necessity to making travelers feel welcome and comfortable, is cleanliness. Hosting a dirty vacation rental is incredibly bad for repeat business. After every guest, there needs to be a complex cleaning plan. The vacation rental should look, feel, and be clean. Usually this means hiring a professional cleaning service before and after each guest checks out. This investment will cause your positive reviews to shoot up, leading to more business and revenue.

This also means, get rid of stained and old-looking carpets, refinish wood flooring, and lay fresh tile or new rugs. Provide several mirrors throughout the rental, as well as storage, and a folder or notes on how to operate any equipment.

Another way to make your property stand out, is to include thoughtful suggestions on what to do and where to go in the local area. Furthermore, some Airbnb hosts have found success through offering incentives for longer stays, like a gift certificate to a local restaurant.

Keep the decor minimal and clean, choosing only a few statement pieces. Neutral colors are best, since every guest will have different taste and styles.

Furthermore, consider having your vacation rental professionally photographed, to attract more business and frequent bookings. In addition to professional photography, the images should be staged so that the lifestyle and accommodations are being properly marketed and look appealing. Take seasonal photographs of the yard and outside to make the experience feel more personal and welcoming.

Remember, this may be your guests' first time in your city or town. Do your best to give them a warm and welcoming experience, make your accommodations thoughtful; offer generous toiletries and functional gifts. Keep in mind, the smallest and friendliest details can go a long way, and lead to an abundance of repeat bookings and customers.